IPO closes on 26 Jun'25
Kalpataru Ltd
Minimum Investment
₹ 14,904 / 36 shares
Grey market premium
₹ 9 (2% premium)
Our Verdict:
Neutral
- Kalpataru Ltd is a prominent real estate developer with a strong presence across key micro-markets in the Mumbai Metropolitan Region (MMR). The company has reported losses in the last three fiscal years, though it has achieved profitability in 9MFY25. However, its ability to maintain this positive performance remains uncertain.
- The company plans to use the majority of the IPO proceeds to repay or prepay debt, which will strengthen its balance sheet and reduce leverage. This debt reduction is expected to facilitate smooth project execution and enable the realization of anticipated cash flows.
- While Kalpataru has a solid market presence, it currently underperforms on key return and value metrics, compared to its peers. Thus, we do not foresee any meaningful listing gains.
- Given these considerations, it is advisable for investors to refrain from investing at this stage. Any correction in the stock price post-listing could present a better opportunity for long-term investors to gain exposure to the stock.
About the company
Founded in
22 Dec'88
Managing director
Parag Munot
- Kalpataru Ltd is a part of the diversified Kalpataru Group that operates globally across key sectors such as EPC contracting in power transmission, oil & gas, railways, civil infrastructure, logistics and facility management.
- A leading real estate developer in the Mumbai Metropolitan Region (MMR), Kalpataru focuses on luxury, premium and mid-income residential projects. It also develops commercial and retail properties, integrated townships, lifestyle communities and redevelopment ventures. As of December 31, 2024, the company owns 485.38 acres of land at various stages of development, offering a total potential buildable area of 48.97 million square feet (msf).
STRENGTHS
- Market Position: Kalpataru ranks as the 5th largest developer in the Municipal Corporation of Greater Mumbai (MCGM) area and the 7th largest in Thane, Maharashtra, based on units delivered from CY2019 to December 31, 2024.
- Sharp Turnaround: Kalpataru achieved an EBITDA of Rs 101.67 crore and net profit of Rs 5.51 crore for 9MFY25, marking a significant recovery from previous losses.
- Solid Project Pipeline: As of December 31, 2024, Kalpataru boasts a robust pipeline with 25 ongoing projects, 6 upcoming projects and 5 planned projects, providing strong visibility on near-term cash flows through continued sales during construction.
- Diverse Product Range: Kalpataru serves a wide range of price points. As of December 2025, approximately 11.57% of unsold residential units fall under the ultra-luxury category, 20.91% under luxury, 59.45% under high-end and 8.06% under mid-end categories.
RISK FACTORS
- Weak Track Record: Kalpataru and some of its subsidiaries have posted losses over the past three fiscal years. Despite reporting profitability in 9MFY25, its ability to sustain this positive trend remains uncertain.
- High Leverage: Kalpataru has substantially increased its leverage in recent years. Project disruptions during the COVID-19 period, along with consecutive losses in FY23 and FY24, resulted in higher debt levels and a decline in net worth. Although the infusion of funds by promoters will reduce the Debt-to-Equity ratio to 4.1 times (source: Moneycontrol), the debt level remains relatively high.
- Geographical Concentration: Kalpataru relies heavily on a few regions for its revenue, with 95% of its real estate development projects (as of December 31, 2025) concentrated in the MMR and Pune. This geographical concentration exposes the company to risks from regional market fluctuations.
- Legal Risks: Kalpataru, along with its directors, subsidiaries, joint ventures and group companies, is currently facing legal cases totalling approximately Rs 2,529 crore. Adverse outcomes from these legal proceedings could harm the company's reputation and business prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 1,590 crore
Fresh Issue
₹ 1,590 crore
OFS
₹ -
Price range
₹ 387 - 414
Lot size
36 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for:
- Repayment/pre-payment of certain borrowings availed by the Company and its Subsidiaries; and
- General corporate purposes.
Dates
Bidding open
24 Jun'25
Bidding close
26 Jun'25
Allotment date
27 Jun'25
Refund date
30 Jun'25
Listing
1 Jul'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.